Swaraj Suiting Outlines 174.20 Crore Preferential Issue and Shareholding Realignments

Key numbers

Market Cap	₹955.84 CrTextiles Sector
P/E Ratio	18.25Sector: 48.16
Promoter Holding	62.72%Pre-issue level
1-Year Change	44.27%Stock performance

Key highlights

• Promoter holding is set to decrease from 62.72 percent to 55.87 percent post-preferential issue
• Clarus Capital I emerges as the largest institutional allottee with a projected 8.439 percent stake
• The issue involves 81 named allottees for convertible warrants and specific equity shares
• A valuation report addendum dated October 19, 2026, was filed to address stock exchange observations
• Company confirms no change in management or control will occur pursuant to the issuance

Preferential Issue and Institutional Entry

Swaraj Suiting Limited is progressing with its 174.20 crore fund-raising exercise through a mix of preferential equity shares and convertible warrants. The latest clarification submitted to the exchanges highlights a restructured equity base where the total share count will rise from 2.64 crore to 3.68 crore shares. A primary driver of this capital influx is Clarus Capital I, which is projected to hold 31.06 lakh shares, representing over 8.4 percent of the company's post-issue capital.

This institutional participation aligns with the company's recent strategic moves, including its successful migration from the NSE Emerge platform to the Main Boards of both the NSE and BSE in August 2026.

Major Allottees and Shareholding Shifts

• Promoter group holding will reduce from 1.65 crore shares to 2.05 crore shares post-issue
• Clarus Capital I will increase its holding from 2.296 percent to 8.439 percent
• Kritagyata Trust is slated to acquire a 3.056 percent stake through 11.25 lakh shares
• Institutional investor representation is expected to rise from 3.14 percent to 9.57 percent
• A total of 81 allottees are identified for the warrant conversion process under Item No. 2

Operational Performance and Incentive Outlook

The fund-raising comes at a time of significant growth for the textile player. For the quarter ended June 30, 2026, Swaraj Suiting reported operating revenue of 183.37 crore, marking a 138.8 percent increase year-on-year. Net profit for the same period stood at 16.42 crore.

Beyond direct operations, the company is positioned to benefit from government incentives estimated between 170 crore and 180 crore over the next seven years related to its Neemuch facility. These incentives, coupled with the capital infusion, are intended to support the company's expanded manufacturing capabilities as it navigates a competitive textile accessories and apparel sector.

Valuation and Regulatory Compliance

To satisfy observations from the National Stock Exchange, Swaraj Suiting integrated an addendum to its original valuation report dated September 24, 2026. This addendum, issued on October 19, 2026, reinforces the pricing and valuation metrics used for the preferential issue. The company has clarified that the current and proposed status of all new allottees remains in the non-promoter category.

This transparency ensures compliance with SEBI Listing Obligations and Disclosure Requirements as the company concludes the formalities from its October 24 Extraordinary General Meeting.

What to watch next

• Board meeting to consider and approve Q2 FY27 financial results on November 14, 2026
• Final listing approval for the newly allotted preferential shares from NSE and BSE
• Realization of state government incentives for the Neemuch facility through FY27

Swaraj Suiting · financial snapshot

Share price	₹355.55
Market capitalisation	₹955.84 Cr
Revenue (annual)	₹576.74 Cr
Net profit (annual)	₹52.37 Cr
Revenue (latest quarter)	₹183.37 Cr-11.52% vs previous quarter
Net profit (latest quarter)	₹16.42 Cr-33.48% vs previous quarter
P/E (TTM)	18.25×Sector 48.16×
Promoter holding	62.72%-1.97% QoQ
FII holding	0.08%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.